VMware starting with version 11, no longer supports full screen for 640x480. You can adjust the host operating system display to 800x600, before running VMware.
QEMU supports full screen for me. QEMU is the only that support sound. Version 8.0 of VMware was the last to support PC Speaker.
QEMU disk speed is about one third as fast as VMware, however.
Yes you can change palette colors. I think it will work. I try not to do it, but it's okay if you do. For one thing it ruins display of mutliple windows.